10-QPeriod: Q1 FY2014

Cheniere Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2014

Filed May 1, 2014For Securities:LNG

Summary

Cheniere Energy, Inc. reported a net loss of $122.3 million for the first quarter of 2014, an improvement from the $124.6 million loss in the same period last year. This improvement, however, was largely driven by a significant decrease in the loss attributable to non-controlling interests, while the net loss attributable to common stockholders was $97.8 million, compared to $117.1 million in Q1 2013. The company's primary focus remains on the development of its LNG liquefaction facilities. Significant capital expenditures continued for the Sabine Pass Liquefaction Project, with construction progressing ahead of schedule for Trains 1 through 4. The company also made progress on its Corpus Christi Liquefaction Project, signing new SPAs in April 2014. Despite ongoing losses, the company is advancing its large-scale infrastructure projects, which are expected to drive future revenue streams.

Financial Highlights

50 data points
Beta

Revenue

$67.55M

Net Income

-$97.81M

-144.8% Net Margin

EPS (Diluted)

$223207000.00

Total Assets

$9.52B

Cash & Equivalents

$914.60M

Free Cash Flow

-$791.60M

Financial Statements
Beta
Revenue$67.55M
R&D Expenses$12.11M
Operating Expenses$115.16M
Operating Income-$47.80M
Interest Expense$40.27M
Net Income-$97.81M
EPS (Basic)$-0.44
EPS (Diluted)$223207000.00
Shares Outstanding (Basic)223.21M
Shares Outstanding (Diluted)223.21M

Key Highlights

  • 1Net loss for the quarter was $122.3 million, a slight improvement from $124.6 million in the prior year's comparable quarter.
  • 2Net loss attributable to common stockholders was $97.8 million, or $0.44 per share, an improvement from $117.1 million, or $0.54 per share, in Q1 2013.
  • 3Total revenues increased slightly to $67.55 million from $65.91 million in Q1 2013.
  • 4Operating costs and expenses decreased to $115.16 million from $133.36 million in Q1 2013, contributing to the reduced operating loss.
  • 5Significant capital expenditures continued for the Sabine Pass Liquefaction Project, with construction of Trains 1-4 progressing ahead of schedule.
  • 6The Corpus Christi Liquefaction Project advanced with new SPAs signed in April 2014.
  • 7Cash and cash equivalents decreased to $914.6 million from $960.8 million at the end of 2013, reflecting ongoing development and operational investments.

Frequently Asked Questions

Cheniere Energy reported a net loss of $122.3 million for the three months ended March 31, 2014, a slight improvement from the $124.6 million net loss in the same period of 2013. The net loss attributable to common stockholders was $97.8 million ($0.44 per share), also an improvement from $117.1 million ($0.54 per share) in the prior year's first quarter. Revenues saw a modest increase to $67.55 million.

Construction on Trains 1 and 2 of the Sabine Pass Liquefaction Project was approximately 63% complete, and Trains 3 and 4 were approximately 27% complete as of March 31, 2014. Both were reported to be ahead of schedule. The company anticipates Train 1 could produce LNG as early as late 2015.

As of March 31, 2014, Cheniere had $914.6 million in cash and cash equivalents. The company expects to meet its cash needs for the next twelve months through operating cash flows, existing unrestricted cash, project debt and equity financings, and distributions from subsidiaries. Significant capital expenditures are ongoing for project development.

Yes, in April 2014, Corpus Christi Liquefaction, LLC entered into two SPAs with Endesa S.A. to purchase a total of approximately 2.25 mtpa of LNG annually upon commencement of operations from the project. This marks a significant commercial development for the project.